Strong support shown by shareholders for Montepuez ruby and Caula Graphite & Vanadium projects
Close of Entitlement Offer & Shortfall Notification
Results of the Offer
The Company received 849 applications under the Entitlement Offer from eligible shareholders for a total of 106,811,504 New Shares. The total subscription amount received by the Company from the Entitlement Offer (before associated costs) was $2,456,666 made up of $1,696,675 of entitlements plus $759,991 of shortfall taken up by eligible shareholders.
Managing Director, Dr. Bernard Olivier said: "The Company and its management team is highly encouraged by the strong support shown by our shareholders in the entitlement offer and we are confident in placing the shortfall quickly. Exploration and development work is currently underway on both our projects with multiple catalysts and milestones in the coming months. In the near term, we will continue exploration and market development work on our Montepuez Ruby Project with test sales through our Thailand office in step with fieldwork and bulk sampling. We are encouraged by the continued growth of the ruby market and Mustang's enviable position as the only publicly listed revenue-generating ruby supplier and believe that there is substantial value to be realised for our shareholders.
Furthermore, recent drill results on the Caula Graphite & Vanadium project have prompted the Board to approve its fast-tracked development with first revenues from Stage 1 trial mining of high grade graphite and vanadium targeted for H1-2019. This will place Mustang in a unique position amongst its peers in both the graphite and vanadium sectors as the Company leverages off its in-house technical and operational abilities to become a leader in the fast growing battery commodity markets."
Notification of Shortfall
The number of securities offered pursuant to the Entitlement Offer was 192,858,347 New Shares resulting in a shortfall of 86,046,843 New Shares ("Shortfall").
Placement of Shortfall
The Entitlement Offer is not underwritten.
The Shortfall will be placed by the Company at the same price of $0.023 per New Share subscribed for and issued. The New Shares under the Shortfall are to be placed within 3 months after the Closing Date i.e. 22 June 2018.
Issue and Allotment of New Shares
The Company will issue and allot all New Shares applied for in accordance with the Entitlement Offer timetable included in the Entitlement Offer Document dated 22 February 2018 ("Offer Document") and will apply to ASX for quotation of New Shares allotted.
The Directors would like to express their thanks for the support by the participants in the Entitlement Offer.
The net proceeds received from the Entitlement Offer and the issue of the Shortfall will be applied as described in the Offer Document.
About Mustang Resources Ltd
Mustang Resources Limited (ASX:MUS) (FRA:GGY) is an ASX listed company focused on the development of the Caula Vanadium-Graphite Project in Northern Mozambique, located along strike from the Syrah Resources Ltd (ASX:SYR) Balama Project. In July 2018 Mustang announced a maiden vanadium JORC Measured Resource for Caula of 22Mt at 0.37% V2O5 for 81,600 tonnes of contained vanadium pentoxide. The Company concurrently announced a 317% increase in its JORC Graphite Resource to 21.9Mt at 13.4% Total Graphitic Carbon ("TGC") (8% cut-off), for a total of 2,933,100 tonnes of contained Graphite, all in the measured category.
The Company has a highly experienced board and management team with a 15-year track record of investment and successful project development in Mozambique and the Africa region. With the aim to become a key provider of graphite and vanadium, both key components used in battery production, the company currently has a scoping study underway, which is due for completion in Q3 2018.
Visit the Mustang website at http://www.mustangresources.com.au for more information.
Mustang Resources Ltd